A computer equipment dealer sells three types of printers: Laser I, Laser II, and Laser III. The prices of these printers for the years 2000 and 2003 are given below.
Unit Price ($)
Printer 2000 (Po) 2003 (Pt)
Laser I 2,800 2,000
Laser II 1,200 1,100
Laser III 800 644

a. Compute an unweighted aggregate price index for the printers. Let 2000 be the base period.

b. Interpret the meaning of the value that you found in Part a.